New Low 2022, Crypto Rout Worsens, FTX Continues to Worry By Investing.com

Bitcoin: Nouveau creux 2022, la déroute des crypto s


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Investing.com – Bitcoin and cryptocurrencies in general posted an impressive dip yesterday on a very busy day, which resulted in a new yearly low for BTC. $260., at 17

Digital assets have indeed been affected by fears of bankruptcy of the crypto platform FTX (issuer of the) and the trading company Alameda, which all have the same boss, Sam Bankman-Fried.

FTX Bankruptcy Risks Send Shockwaves Through Crypto Market

Recall that Coindesk revealed on Sunday that the trading company Alameda had invested heavily in the FTX Token, which had led the boss of Binance, the largest crypto platform in the world, to launch the liquid form of his investment in the FTX Token plates.

The FTX Token, which had already lost ground on Saturday, Sunday and Monday, abruptly accelerated its fall overnight from Monday to Tuesday, losing almost 30% in around 3 hours.

This violent fall, Coupled with increasing headlines pointing to a potential bankruptcy of FTX and wide contagion in the crypto market, made FTX’s troubles a bearish factor for all of cryptocurrency Bitcoin as a whole with the $20,000.

A potential takeover of FTX by Binance reassures… Temporarily

In the afternoon, a bullish surge was then observed as the boss of Binance indicated by surprise that his company was going to try to acquire FTX for an undisclosed amount.

“This afternoon, FTX asked for our help. There is a significant cash shortage. To protect users, we have signed a non-binding LOI, with the intention of fully acquiring FTX and helping to cover the liquidity shortage. We will do a full DD in the next few days,” Zhao tweeted.

This takeover project was also confirmed by Sam Bankman-Fried:

This news initially caused a very strong rebound, the FTX having gone from $14.43 to $20.90, or around +30%, in less than an hour. Bitcoin also reacted positively, rising from $19,500 to $20,630 (+5%) at the same time.

Reuters raises concern over FTX, Bitcoin plunges to new yearly low

But the lull was ultimately very short-lived, with a Reuters article reigniting concerns and casting doubt on Binance’s takeover of FTX and the deal’s ability to resolve the current crisis.

The news agency did indeed reveal that cryptocurrency exchange FTX saw around $6 billion in withdrawals in the 72 hours to Tuesday morning, according to a message to staff by its CEO Sam Bankman-Fried.

“On an average day, we have tens of millions of dollars in net inflows/outflows. Things were pretty average until this weekend a few days ago,” Bankman-Fried wrote in a message to staff. sent Tuesday morning.

“Over the past 72 hours, we’ve had approximately $6 billion in net withdrawals from FTX,” he wrote, adding that withdrawals on FTX’s main unit, FTX.com, are “effectively paused.” a problem that would be solved in “the near future”.

“Most of the details (of the transaction) are not yet settled,” he wrote, adding that he had no “definitive answers” ​​to questions such as “what exactly is the transaction” with Binance and “what entities would it include.”

The criticism of many is that if FTX’s situation is not resolved by Binance’s buy offer on the exchange, a stronger sell-off in the market could see a liquidation cascade and send the price of BTC and most other cryptocurrencies to new lows.

In this context, the FTX Token abruptly accentuated its fall, reaching a low of $2.68 last night. Currently back at $5.65, FTT is showing a 75% 24-hour drop at the time of writing.

As for Bitcoin, the fall continued to a low of $17,260. Bitcoin is now back at $18,440, but still showing a more than 10% 24-hour pullback.

The case is therefore still far from over, and should continue to occupy the forefront of the crypto scene this Wednesday. In particular, we are awaiting details on the extent of the harmful effects announced by Reuters yesterday, as well as a potential firmer confirmation of the acquisition of FTX by Binance, or of an abandonment of the project. So risk it to stay high.

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